River Island is tipped to close a number of stores in the latest blow to the high street. The fashion retailer currently has around 230 shops across the UK and employs 5,500 people.
According to the Retail Gazette, the family-owned chain is battling falling sales and tough trading conditions. It has now called in restructuring experts from PwC in a bid to save the company. It comes after River Island reported a £32.2 million loss for 2023, with turnover down more than 19%.
The business made redundancies at its head office in London, including in buying, merchandising and HR, in January. While decisions about the future of River Island have yet to be taken, PwC will draw up a formal restructuring plan to try to prevent the chain closing down.
The chain is run by Ben Lewis, nephew of the founder Bernard Lewis. He took over as CEO in February having previously held the post for 10 years before stepping down in 2019.
Bernard Lewis started the business as a fruit and veg stall in Notting Hill. It then became The Wool Shop before rebranding as Chelsea Girl in 1970.
The retailer officially became River Island in 1988 and launched sites across the nation. It opened its first overseas branches in 1993 and started to sell online.
River Island Holdings Limited said in its latest annual report: “The market for retailing of fashion clothing is fast changing with customer preferences for more diverse, convenient and speedier shopping journeys and with increasing competition especially in the digital space.”
“The key business risks for the group are the pressures of a highly competitive and changing retail environment combined with increased economic uncertainty.
“A number of geopolitical events have resulted in continuing supply chain disruption as well as energy, labour and food price increases, driving inflation and interest rates higher and resulting in weaker disposable income and lower consumer confidence.”